The success of Holiday Inn Group
Kemmons wilson established the first holiday hotel in 1952. He emphasized the importance of geographical location, and the hotel system established when starting a business was mostly distributed along expressway, aiming at the middle class with cars. He designed the hotel according to the consumption level and demand of the mid-range mass market at that time, emphasizing cleanliness, comfort, hygiene and safety, paying attention to the maintenance of the hotel and keeping it clean and fresh. Thanks to the initiative of standardization and joint operation, Wilson has developed a resort company with only a few motels into the largest hotel group in the world in more than 30 years, and made the holiday a popular home away from home. The success of the holiday mainly comes from the following aspects.
First, standardized management.
The biggest secret of the success of Holiday Group is to consistently adhere to standardized management and provide products and services in strict accordance with unified quality standards. In view of this holiday, a set of strict quality standard guarantee system has been formulated to ensure that every hotel in the joint number meets the quality standard. Holiday Hotel Standard Manual compiled by Holiday Group has detailed regulations on the buildings, indoor equipment and service processes of its hotels, and any regulations cannot be changed without the approval of the headquarters. In order to ensure that the provisions of the manual are strictly observed and implemented, Holiday Group organized a full-time investigation team composed of 40 people to conduct spot checks on its hotels four times a year. More than 500 items were randomly selected, with a full score of 1000. If the inspection results are not up to standard, give a warning and make corrections within a time limit; If the second inspection still doesn't improve, double the punishment and give another time to correct it. If it still fails to meet the standards within the specified time, the management personnel of the hotels owned by the Group will be dismissed, and the franchised hotels will be dismissed or the franchise contracts will be terminated by the relevant institutions of the Group headquarters. There are about 30 such hotels every year.
Second, the sale of franchise rights.
From 65438 to 0953, Wilson began to sell the franchise of Holiday Inn. At that time, the connection was very simple, paying $500, investing about $300,000 as planned to build a hotel, and paying a connection fee of 5 cents per room every night. At first, Holiday Group only needed to provide consultation on site selection, opening, personnel training and promotion. In 1960s, due to the successful operation of Holiday Group, more and more hotels bought its franchise. At this time, the Group expanded its consulting scope to services other than real estate, such as hotel design, unified procurement through central procurement network, sales network and management system. In the mid-1970s, the scale of every hotel was expanding. In the past, the number of rooms in holiday hotels generally did not exceed 30. 1975, the average scale of holiday hotels reached 125. More than 100 hotels worldwide apply for franchising every year, and a small number of them (about 200 hotels) are approved after strict screening. The operation of "Big Signal" project and the installation of Holidex computer reservation system have enabled Holiday Group to expand rapidly.
During this period, Holiday Group established a joint credit card with Gulf Oil Company, which provided a loan of $6,543,800 and a mortgage of $25 million for the expansion of Holiday Group. After 654.38+05, Gulf Company built more than 500 gas stations next to Holiday Inn. Both parties agree that the Gulf Credit Card issued by Gulf Oil Company can also be used in Holiday Inn to pay for accommodation and other expenses. Since then, the expenses paid by Gulf Credit Card holders using this credit card at Holiday Inn have reached $6,543.8+$200 million. At this stage, the expansion speed of Holiday Group reached its peak, and the joint mode changed, so it was necessary to pay the daily operating expenses, which was about 6% of the gross income, and constituted a large part of the total income of Holiday Group. Later, it merged with long-distance bus companies, shipping companies, restaurants and other related enterprises to become a hotel giant.
Third, reduce costs.
Because holidays are geared to the mass market and provide cheap and excellent services, it is the key to control the cost at a low level. First of all, pay attention to the use of local building materials in the construction cost. There is no basement, water heating equipment is installed on the roof, and hotel facilities do not require luxury, but comfort. Before 1975, the cost of Holiday Group hotels was $65,438+$00,000 (suburban hotels)-$30,000 (urban hotels) per standard room, with an average room rate of $20. After 1975, the cost of 1984 building hotels in Hong Kong, Japan and Singapore in the Asia-Pacific region was also controlled at $40,000-$50,000, with an average house price of $46.
In addition, through unified procurement, we can save money and control costs in many details, such as using wrinkle-free sheets and cheaper carpets, collecting broken soap as detergent and using energy-saving key power switches.
Strict cost control gives Holiday Group a price advantage.
(1992- 1995, the cost per room of two-star hotels in China is 265,438 yuan +0.65 million yuan; Samsung 382,200 RMB; Four-star RMB880,300; Five stars 1 145800 RMB)
Fourth, brand innovation.
1979 after Wilson retired for health reasons, the business strategy of the hotel group has changed a lot, and entering the gambling industry is the biggest move. 1980, Holiday Inn acquired Harrah's for $300 million, becoming the largest gambling operator in the United States. By 1983, a quarter of the profits of Holiday Group come from gambling.
1988, British Bath Group bought all holiday hotels outside North America. 1990, it bought all holiday hotels in North America through financing, and changed its name to Holiday Inn Worldwide, and its headquarters moved from Wilson's hometown Memphis to Atlanta. The biggest change after the hotel changed hands is brand extension.
Hotels are divided into six categories:
1. Holiday Inn: It is the main part of Holiday Inn Company, and it is a hotel with moderate price and comprehensive service.
2. Ambassador Suite and Royal Hotel (Embassy Suite &; Granda Royale): a full-service hotel, mainly for the long-term business travel market.
3. Hampton Hotel: a new type of economical accommodation facility, facing the lowest floor of the mid-range market.
4. Holiday Inn Crowne Plaza Hotel: A hotel in a big city and a luxury hotel with more than four stars must meet three conditions: ① opening a business floor (concierge floor/executive club); ② Restaurant with flavor; ③ There are small and medium-sized conference facilities and banquet halls. Its room rate is 40% higher than that of ordinary resort hotels, but 5%- 10% lower than that of similar products of competitors.
5.Residence Inns: All-suite hotel. Facing long-term visitors, each suite has a full set of kitchen facilities.
6. Hala Hotel: A specialized gambling hotel. By 1989, gambling revenue accounts for 30%-40% of the company's after-tax profit.
1989, the company made a series of changes, including Homewood Suite and Embassy Suite &; The Royal granda Hotel, Hampton Hotel and Haalas Hotel have set up a new company-Promus Company.
After the separation, Holiday Company still attaches great importance to the layered development of hotel products. There are currently seven brands:
Holiday Inn, Holiday Inn Express, Crowne Plaza Hotel, Holiday Inn Garden Square, Holiday Inn Select, Holiday Inn Sunshine and Holiday Inn.
Five, constantly improve the computer reservation system
Holiday Inn Group has been at the forefront in the construction of reservation system.
At first, every holiday hotel called to book the next holiday hotel for the in-house guests, and the guests paid the telephone bill. 1965, Holiday Inn established its own independent computer reservation system Holidex Ⅰ, and developed the second generation reservation system Holidex Ⅱ in 1970s. Through this system, holiday hotels anywhere can be booked at any time in each holiday hotel, and it can be confirmed in a few seconds, all free of charge.
Holidex Ⅲ (Holidex 2000), a subsidiary of Holiday Inn Group, is the largest civil computer network in the world, second only to the communication network of the US government. It was once designated as a communication backup system in the event of a national emergency in the United States. At the same time, the system currently has a dedicated satellite, which can not only be used for booking and transmitting information, but also broadcast directly to theaters and CCTV, and has installed remote video conferencing facilities via satellite in more than 65,438+0,000 resort hotels in the United States.
In terms of promotion, holidays also attach great importance to the influence of media advertisements and the establishment of public image. As early as the 1960s, Holiday Group, as a motel, bought out the broadcasting rights of several radio stations from late at night to 5 am, which was specially used to broadcast the news of Holiday Group. The advertising cost in this period is low, but it is the best promotion opportunity for the target market of holiday motels-driving tourists.
Sixth, the spirit of the festival
Corporate culture is the guarantee to maintain the long-term competitive advantage of Holiday Inn Group, and holiday spirit is the concrete embodiment of this culture: unpretentious, honest and reliable, persistent, optimistic and generous, full of enthusiasm. Holiday spirit has created high-quality employees and won the trust and satisfaction of countless guests on holidays.
Motto: Starting from the actual needs of guests from all over the world, provide them with thoughtful service.
"treat guests as friends" instead of "customers are God"
Holiday Inn firmly believes that "making guests happy is the bounden duty of the hotel, which is why Holiday Inn is so popular. It is the unshirkable responsibility of the holiday company to provide value-for-money friendly service. "
Holiday Inn University: Founded in 1968, it is now in Olive Branch, Mississippi, with more than 3,000 readers every year. According to the regulations of Holiday Group, how to be hired by the general manager, the manager of the catering department of Holiday Hotel must receive two weeks of special training in this university, and the general manager must also engage in two weeks of training in the seminar.